1. Field of the Invention
This invention pertains in general to estimating landed costs for domestic and internationally shipped goods and in particular to a computer system and method for automatically calculating the same.
2. Background Art
Estimating costing information for goods shipped internationally is a very complex process. Countries typically charge duties on imported goods based on the goods' classifications in the countries' harmonized tariff schedules. However, different countries often place identical goods in different classifications. In addition, different countries place different tariffs on goods even when the countries assign goods to the same class.
International treaties, such as trade agreements between two or more countries, may reduce or eliminate tariffs on certain goods. Countries may also have quotas, two-stage tariff systems, or anti-dumping and countervailing duties wherein the tariff on a good is determined by the amount of that good previously imported into the countries. There may also be restrictions on the types of goods that can be exported out of or imported into certain countries, or shipped to certain people or addresses.
In addition, shipping rates vary greatly for different types of goods and shipping methods. Moreover, different companies or other suppliers of goods frequently negotiate custom rates with one or more shippers that need to be considered when estimating landed costs. Plus, currency exchange rates fluctuate regularly.
All of the above factors make it extremely difficult to calculate costing information for a good. As such, it is difficult for a salesperson or other interested party to provide a reasonably accurate price quotation in real-time (e.g., while a potential buyer is on the telephone). Therefore, there is a need in the art for a way to provide a fast and accurate estimate of costing information for a good.